Which of the following statements is true of normal spoilage and abnormal spoilage?
A) Normal spoilage is inherent in a particular production process, whereas abnormal spoilage is not inherent in a particular production process.
B) Abnormal spoilage arises even when the process is carried out in an efficient manner, whereas normal spoilage does not arise when the process is carried out in an efficient manner.
C) Normal spoilage is usually regarded as avoidable and controllable, whereas abnormal spoilage is unavoidable and uncontrollable.
D) The costs of normal spoilage are recorded as a loss as a separate line item in an income statement, whereas costs of abnormal spoilage are included as a component of the costs of good units manufactured.

Question

Quizplus · Accepted Answer

Normal spoilage is inherent in a particular production process and can be predicted based on past experience. On the other hand, abnormal spoilage is not inherent in a particular production process and is caused by reasons such as poor quality control or improper handling of materials. Abnormal spoilage can typically be prevented with appropriate measures, whereas normal spoilage cannot be completely eliminated. Therefore, option A is the correct answer. Option B is incorrect because normal spoilage can arise even when the process is carried out in an efficient manner. Option C is incorrect because normal spoilage is usually regarded as an inevitable cost of production and is not controllable, whereas abnormal spoilage can be avoided with proper control measures. Option D is incorrect because both normal spoilage and abnormal spoilage costs are included in the costs of goods manufactured.

Which of the Following Statements Is True of Normal Spoilage